Kalyan Jewellers India Ltd Reports Very Positive Quarterly Financial Performance Amid Market Challenges

Robust Quarterly Financials Signal Strong Operational Momentum

Kalyan Jewellers has recorded its highest-ever quarterly net sales at ₹10,343.42 crores for the December 2025 quarter, reflecting a marked acceleration compared to previous periods. This surge in revenue is complemented by a peak PBDIT (Profit Before Depreciation, Interest and Taxes) of ₹750.48 crores, underscoring improved operational efficiency. The operating profit margin also expanded to 7.26%, the highest in recent quarters, indicating better cost management and pricing power in a competitive gems and jewellery sector.

The company’s operating profit to interest ratio reached 7.19 times, a significant improvement that highlights enhanced earnings capacity relative to its debt servicing obligations. Profit before tax excluding other income stood at ₹537.26 crores, while net profit after tax surged to ₹447.15 crores, both representing record highs for the company. Earnings per share (EPS) rose to ₹4.03, signalling improved shareholder returns and profitability.

Financial Trend Upgraded to Very Positive

MarketsMOJO’s proprietary financial trend score for Kalyan Jewellers has improved dramatically from 16 to 29 over the past three months, reflecting the company’s strong quarterly results and operational improvements. This upgrade from a previously positive to a very positive financial trend underscores the company’s successful execution of its growth strategy and margin expansion efforts.

Despite these gains, the company’s cash and cash equivalents at half-year stood at ₹803.70 crores, the lowest level recorded recently, which may warrant monitoring for liquidity management going forward.

Stock Price and Market Capitalisation Context

As of 9 February 2026, Kalyan Jewellers’ stock price closed at ₹379.80, up 0.96% from the previous close of ₹376.20. The stock has traded within a 52-week range of ₹347.65 to ₹617.30, reflecting significant volatility over the past year. The current market cap grade stands at 2, indicating a moderate market capitalisation relative to peers in the gems, jewellery and watches sector.

While the recent price movement shows modest gains, the stock’s performance over various time frames reveals a mixed picture. The one-week return of 5.05% notably outperformed the Sensex’s 1.59% gain, but the one-month and year-to-date returns were deeply negative at -24.13% and -21.79% respectively, compared to the Sensex’s modest declines of -1.74% and -1.92%. Over the one-year horizon, Kalyan Jewellers’ stock has underperformed sharply with a -29.94% return, whereas the Sensex gained 7.07% during the same period.

Long-Term Outperformance Despite Recent Weakness

Despite recent underperformance, Kalyan Jewellers has delivered exceptional returns over the longer term. The stock’s three-year return stands at an impressive 216.63%, vastly outpacing the Sensex’s 38.13% gain. This strong multi-year performance highlights the company’s ability to generate shareholder value through sustained growth and market share gains in the competitive gems and jewellery industry.

However, the absence of data for five- and ten-year stock returns precludes a full assessment of very long-term trends, though the Sensex’s robust 64.75% and 239.52% returns over five and ten years respectively set a high benchmark for comparison.

Sector and Industry Positioning

Kalyan Jewellers operates within the gems, jewellery and watches sector, a segment characterised by cyclical demand patterns and sensitivity to gold prices and consumer sentiment. The company’s recent financial improvements suggest it is successfully navigating these challenges through operational efficiencies and strategic initiatives.

Its Mojo Score of 53.0 and upgraded Mojo Grade from Sell to Hold as of 19 January 2026 reflect a cautious but improving outlook from market analysts. This upgrade signals growing confidence in the company’s near-term prospects while acknowledging ongoing risks.

Investor Takeaway and Outlook

Kalyan Jewellers’ very positive quarterly financial performance marks a notable turnaround in revenue growth and margin expansion, positioning the company favourably within its sector. The record-high net sales and operating profit margins demonstrate effective execution of growth strategies and cost controls.

However, investors should weigh these operational gains against the stock’s recent price volatility and underperformance relative to the broader market indices. The company’s low cash reserves at half-year may also require attention to ensure liquidity remains sufficient for ongoing expansion and working capital needs.

Given the upgraded Mojo Grade to Hold, cautious optimism is warranted. Investors may consider monitoring upcoming quarters for sustained margin improvement and cash flow stability before committing to a stronger buy stance.

Long-term investors who have held the stock over multiple years have been rewarded handsomely, but short-term traders should remain vigilant amid the current market headwinds.

Comparative Performance Summary

In summary, Kalyan Jewellers India Ltd’s financial trend has shifted from positive to very positive, driven by record quarterly results in December 2025. While the stock price has shown mixed returns over recent months and the past year, the company’s operational metrics suggest a solid foundation for future growth. The sector remains competitive, but Kalyan Jewellers’ improved profitability ratios and earnings growth provide a compelling case for investors seeking exposure to the gems and jewellery industry.

Market analysts and investors alike will be watching closely to see if this momentum can be sustained in the coming quarters, potentially signalling a more durable recovery in the stock’s performance.

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